THE forfeiture of $3.2 Billion through the proposed amendment to the Mineral royalty act by the UPND

By OLIVER SAMBOKO
THE forfeiture of $3.2 Billion through the proposed amendment to the Mineral royalty act by the UPND, will result in the country losing over $200 million dollars per annum, says Kamfinsa Member of Parliament, Christopher Kang’ombe.
Debating to the proposed amendment to the mineral royalty Tax in parliament yesterday, Mr Kang’ombe also said there is no proof that once the country forgo the $3.2 billion, investment will suddenly start flowing in the Mining sector.
Meanwhile, Mr Kang’ombe said the Pay as Earn exemption threshold of K4, 500 is to low considering that the cost of living will soon go up following the increment in fuel pump price.
He said the exemption should be increased to K5,500 to cushion the impact of the increased price for commodities in 2022.
And Former Home Affairs Minister Stephen Kampyongo, said the PF government arrived at the current measure that the UPND is trying to do away, after assessing the situation and realizing that with the kind of investors in the Mining sector, the country was going to lose out on revenue.
He said the country’s minerals should be protected because when it diminishes the country will only remain with empty holes.
He said the people of Zambia are concerned about some of the measures the UPND government is making.
But Finance Minister Situmbeko Musokotwane, said government has not withdrawn Mineral royalty tax except that the only change is computation of tax, and explained that whatever Mines will be paying, will be deductible.
He said if the PF had won the August 12, general election, they would have also done the same thing to correct a serious mistake they themselves created.
Mr Musokotwane said before the PF came to office in 2011, there were so many Mining companies that came into the country, including Lumwana and Kalumbila which resulted in copper production to rise from 200,000 metric tons to 800,000 metric tons per annum but that once in power, PF introduced a bad mineral tax that had devastating effects on the sector.
He said because of that no new Mines opened during the stay of the PF in power, which the UPND government wants to correct in order to attract more investment in the mining sector.
“The PF mineral regime resulted in copper production reduction, the reason why while the country is rich in mineral resources, the citizens have continued living in poverty,’ he said.